In response to the Ohio attorney general’s lawsuit, HomeEq Servicing, the subsidiary of Barclays Capital, released a statement to HousingWire. “HomeEq believes this is a meritless complaint which it will defend vigorously,” according to the statement. “HomeEq is committed to quality customer service and to working with financially distressed borrowers to help them remain in their homes.” According to the lawsuit, Ohio borrowers with mortgages serviced by HomeEq complained to the attorney general’s office about inadequate communication during their attempts at getting a modification on the loan. HomeEq told HousingWire that during the last twelve months, it has modified more than 45,000 loans and provided over 210,000 alternatives to foreclosures. “These solutions outnumber foreclosures by almost four times,” according to the statement. In the lawsuit, the attorney general seeks reimbursement for all consumers damaged by HomeEq’s practices, and that the court fine HomeEq $25,000 for each violation of the Ohio Revised Code. Under the Home Affordable Modification Program (HAMP), HomeEq has started 657 trial modifications of the 40,969 loans in its eligible portfolio, according to the latest report from the US Treasury Department. Through HAMP, the Treasury allocates capped incentives to servicers for the modification of loans on the verge of foreclosure. HomeEq currently has a potential cap of $552m. Of the 657 trials started, HomeEq has converted none into permanent modifications. Write to Jon Prior.